AXT (NASDAQ:AXTI) Shares Down 10.2% - What's Next?

Key Points

• AXT shares fell 10.2% to $39.10 on Friday, with trading volume down 69% from its average.
• The company beat quarterly expectations, reporting EPS of $0.41 versus $0.31 expected and revenue of $73.41 million versus $66 million forecast.
• Analyst sentiment is mixed but averages to a “Moderate Buy,” with a consensus price target of $77.80; ratings range from Strong Buy to Sell.

Shares of AXT Inc (NASDAQ:AXTI - Get Free Report) dropped 10.2% during trading on Friday. The stock traded as low as $38.90 and last traded at $39.1040. 3,193,690 shares were traded during trading, a decline of 69% from the average session volume of 10,243,923 shares. The stock had previously closed at $43.54.

Analyst Ratings Changes

AXTI has been the topic of a number of recent analyst reports. B. Riley Financial lifted their price target on shares of AXT from $55.00 to $56.00 and gave the company a "neutral" rating in a research report on Friday, October 30th. Needham & Company LLC raised shares of AXT from a "hold" rating to a "buy" rating and set a $90.00 price objective for the company in a report on Friday, July 31st. UBS Group set a $90.00 target price on shares of AXT in a research note on Friday, July 31st. Zacks Research upgraded shares of AXT from a "hold" rating to a "strong-buy" rating in a report on Wednesday, November 4th. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of AXT in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, AXT presently has an average rating of "Moderate Buy" and an average price target of $77.80.

AXT Stock Performance

The company has a market capitalization of $2.63 billion, a price-to-earnings ratio of 89.41 and a beta of 2.01. The firm's 50-day simple moving average is $62.81 and its 200-day simple moving average is $65.12.

AXT (NASDAQ:AXTI - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The semiconductor company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.10. AXT had a net margin of 18.53% and a return on equity of 5.21%. The company had revenue of $73.41 million for the quarter, compared to the consensus estimate of $66.00 million. Equities research analysts forecast that AXT Inc will post 1.11 earnings per share for the current year.

Insider Buying and Selling

In other AXT news, Director Leonard Leblanc sold 4,000 shares of the company's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $96.07, for a total value of $384,280.00. Following the completion of the transaction, the director owned 113,129 shares of the company's stock, valued at $10,868,303.03. This represents a 3.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 5.97% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of AXTI. First Trust Advisors LP acquired a new stake in AXT in the 3rd quarter valued at about $8,297,000. Allianz SE bought a new position in AXT during the third quarter worth about $516,000. Advisors Asset Management Inc. acquired a new position in AXT during the third quarter valued at approximately $401,000. Private Advisor Group LLC acquired a new position in shares of AXT in the 3rd quarter valued at $325,000. Finally, Voya Investment Management LLC raised its position in shares of AXT by 325.1% during the third quarter. Voya Investment Management LLC now owns 50,575 shares of the semiconductor company's stock worth $3,915,000 after purchasing an additional 38,678 shares during the period. 49.52% of the stock is owned by institutional investors.

AXT Company Profile

AXT, Inc. develops and manufactures compound semiconductor substrate materials used to make electronic and optoelectronic devices. Its products include indium phosphide, gallium arsenide and germanium substrates, supplied in wafer form for use by semiconductor manufacturers. These materials support applications such as fiber-optic and data communications, wireless devices, lasers, LEDs and solar cells. AXT also provides substrate processing services, including wafer polishing and finishing. Founded in 1986 and headquartered in Fremont, California, AXT serves customers around the world.

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